Moneycontrol PRO
Upcoming Webinar:Join us for 'The Future Techshot' on Sept 22, 10:30am to gain insights into role of tech in streamlining businesses. Register Now!

Jubilant Pharmova profit jumps 350% to Rs 160 crore in Q1FY22

The net profit jump was led by gradual recovery in specialty radiopharmaceutical business hit by COVID-19, traction in contract manufacturing and generics segment performing well on COVID antiviral drug Remdesivir sales.

July 23, 2021 / 06:54 PM IST
On import alert issued by USFDA last week on the company's Roorkee formulations manufacturing facility, the company said it was engaging with the agency and taking help of consultants to resolve the regulatory compliance issues.

On import alert issued by USFDA last week on the company's Roorkee formulations manufacturing facility, the company said it was engaging with the agency and taking help of consultants to resolve the regulatory compliance issues.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Jubilant Pharmova on July 13 reported net profit of Rs 160 crore in Q1FY22, a year-on-year (YoY) jump of three and half fold compared to corresponding period's low base hit by COVID related disruption.

The net profit jump was led by gradual recovery in specialty radiopharmaceutical business hit by COVID-19, traction in contract manufacturing and generics segment performing well on COVID antiviral drug Remdesivir sales.

The company in Q1FY21 reported a net profit of Rs 35 crore. Revenues rose 41 percent YoY to Rs 1,635 crore in Q1FY22 versus Rs 1,156 crore in Q1FY21.

The earnings before interest, tax, depreciation and amortisation (EBITDA) margins stood at 23.2 percent in Q1FY22, reporting an increase of 7.4 percentage points.

The specialty pharma segment that constitutes 41 percent of company's total revenue grew 18 percent YoY to Rs 632 crore. The CDMO business that constitutes 31 percent or Rs 474 crore rose 70 percent and generic business and generics business rose 54 percent to Rs 362 crore.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

“During this quarter, in addition to YoY increase, we also reported sequential improvement in the Specialty Pharma segment with gradual recovery across radiopharmaceuticals, Radiopharmacy and Allergy business," said Shyam S Bhartia, Chairman and Hari S Bhartia, Co-Chairman & Managing Director of Jubilant Pharmova in a joint statement.

"In radiopharmaceuticals, we have enhanced efforts to promote existing products as well as expand our product pipeline with strategic partnerships. With a gradual recovery in nuclear medicine procedures, the turnaround plan of the Radiopharmacy business is on track," Bhartias said. 

The company said the contract manufacturing business continued to benefit from COVID related deals.

"Contract Research and Development Services business witnessed strong YoY growth in revenues led by healthy demand from customers. We have doubled our chemistry research capacity and the facility is operational now," Bhartias said.

On import alert issued by USFDA last week on the company's Roorkee formulations manufacturing facility, the company said it was engaging with the agency and taking help of consultants to resolve the regulatory compliance issues. 

USFDA has exempted a few products. Some of the exempted products include Meclizine tablets, Olanzapine orally disintegrating tablets, Risperidone orally disintegrating tablets, Spironolactone tablets, and Valsartan tablets, subject to the company meeting a few conditions. 

For the rest of the products, revenue impact for the company is less than 3 percent of total revenues. 

Demerger of API business

Jubilant announced its Board has approved the demerger of the Active Pharmaceutical Ingredients (API) undertaking of Jubilant Generics Limited (JGL)- a wholly owned subsidiary and vesting of the same with Jubilant Pharmova, on a going concern basis.

The company said this business reorganisation will create a small molecule discovery and chemistry focused vertical presence across the value chain of CRO and CDMO of Innovative and Generic APIs. The reorganisation will strengthen and sustain long-term growth, profitability, market share, customer service, risk management as it requires focused management attention, different skill sets and resources.
Viswanath Pilla is a business journalist with 14 years of reporting experience. Based in Mumbai, Pilla covers pharma, healthcare and infrastructure sectors for Moneycontrol.
first published: Jul 23, 2021 06:54 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark